Chase homeowners who are attempting to avoid foreclosure through the home loan modification program have still seen some difficulties, particularly when they are unable to meet requirements to keep them in a modification trial period, due to the fact that there are some homeowners who are unable to sustain their payments or who simply do not qualify for the home loan modification program and, as a result, have been unable to acquire a permanent modification and have faced foreclosure as a result.
While J.P. Morgan Chase has not been the only servicer to see issues with homeowners failing to complete the trial modification process, there are, sadly, numerous servicers who have seen increases in the number of foreclosure starts and completions after homeowners have either failed to find a trial modification or complete their trial modification plan. According to the most recent Making Home Affordable Program report, homeowners through January 2011 with J.P. Morgan Chase totaled at 22,962, who saw foreclosure starts after having their trial modification canceled and 9,087 saw foreclosure completions in the same category. These numbers are up from the previous month where only 22,848 foreclosure starts were seen and 8,169 foreclosure completions had been made, in total as of the HAMP program’s report.
While Chase also saw increases in foreclosures for homeowners not accepted into a trial modification, which stated that foreclosure starts were up to a total of 46,402 and foreclosure completions stood at 11,624 as of January 2011, there are still homeowners who feel that increases in foreclosures point to an underlying problem that needs to be addressed within the modification program in general or with these financial institutions that have been charged with implementing these plans.
There have been no mortgage servicers who have escaped criticism from homeowners and, understandably, when those individuals who are attempting to complete a trial plan are either denied a permanent modification or even fail to acquire a trial modification initially, it’s a difficult situation for homeowners as foreclosure seems to be, in the minds of many, the only option remaining. However, homeowners do need to understand that there are some servicers that offer proprietary home loan modifications and certain states that have been particularly hard hit by financial problems related to unemployment or the housing market may have state-specific foreclosure prevention plans that can benefit homeowners who do not qualify for HAMP.
Homeowners are being prompted to talk with their servicer, contact a HUD-approved housing counselor, or speak with their state’s housing agency to see whether alternative options that may be available will be beneficial for their particular mortgage trouble. While modifications and these alternative forms of assistance are no guarantee, they do offer one more option for foreclosure prevention to homeowners who may have failed to either complete or obtain a trial modification from the Making Home Affordable Program.